Often, as individuals are seeking information on starting a new RIA business and considering the requirements for registering their own independent firm one initial question comes up. That is, if they should register their RIA firm with the Securities and Exchange Commission (SEC) or a state regulator. Filing with the appropriate regulator is typically dependent upon how you are intending to operate your investment advisor firm on the day you become registered. For example, if you are confident you will have assets under management of $100 million or more within 120 days of your RIA firm being registered, then you should consider registering with the SEC. However, if you are not starting out with a large group of clients, then you should consider registering your RIA firm at the state level. You would register your new investment advisor firm in the state where you will have your principal place of business. In some instances, you may also need to register your RIA firm in other states where you will have clients shortly after you become registered. These would be states that follow the national de minimis standard requiring you to register in the state before you take on six clients. And, as you may expect there are exceptions to that national de minimis standard.
There are many more requirements for consideration when registering with the SEC or individual state regulators. To learn more about your registration options, contact Registered Advisor Services today and we will provide you with the information needed to register your RIA firm properly!
